Question: Tremont Inc sells tire rims Its sales budget for the

In the past, cost of goods sold has been 40% of total sales. The director of mar-keting and the financial vice president agree that each quarter’s ending inventory should not be below $ 20,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $ 220,000 during the fourth quarter. The January 1 inventory was $ 32,000. Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine- monthperiod.
View Solution: